Insurance Implications for Land Surveying Businesses. Presented by Gina O Hara, Vice President, Anco Insurance

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1 Insurance Implications for Land Surveying Businesses Presented by Gina O Hara, Vice President, Anco Insurance

2 Basic Buy/Sell Scenarios and Insurance Implications of Each

3 1 Buy Assets and Liabilities Requires buyer to maintain E & O PRO CON Sellers get coverage extended further than they could on own Buyers premiums higher than if they started fresh If Buyer has a firm, carrier could roll new company in.

4 2 Buy Assets Only PRO CON Premiums lower for Buyer starting out Sellers need to buy extended reporting period and it is limited to three-year maximum normally Favorite trick: Seller to retire slowly. Seller has coverage for the little jobs he wants to do after all the fish are caught Seller has coverage for a longer period of years Sellers premiums shrink dramatically Buyer starts out fresh with low premiums

5 Other Important Insurance Considerations

6 Oil and Gas Work Premiums typically 30-50% higher Coverage has to be maintained even if you stop the work Caution: Many policies have a Land Surveyor Services Endorsement

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8 Retroactive Dates

9 10/1/12 2/20/13 6/6/14 8/1/14 Policy retro date (first date policy purchased and coverage maintained uninterrupted) Date the survey performed on the ground Date a claim is made against you Date you quit carrying E & O What if Survey performed on 6/1/12 and claim brought on 6/6/14? Survey performed on 2/20/13 but claim brought on 9/1/14?

10 Know your Coverage

11 Definitions of a claim ADMIRAL "Claim means: 1) a demand received by you for money or services; or 2) a written notice received by any Insured resulting from a Professional Incident that may result in a demand for money or services; or 3) service of suit, or notice received of the initiation of arbitration or other proceedings against you. JAMES RIVER Claim means a written demand for monetary damages arising out of or resulting from the performing or failure to perform Professional Services. DARWIN Definitions of claims: Claim means 1) any written demand for monetary, non-monetary, or injunctive relief; 2) any written request to toll or waive any statute of limitations; 3) any civil proceeding in a court of law or equity, including any appeal therefrom, which is commenced by the filing of a complaint, motion for judgment, or similar proceeding; 4) any criminal proceeding which is commenced by the return of an indictment or similar document; 5) any administrative or regulatory proceeding or investigation, including a proceeding brought by or before the Equal Employment Opportunity Commission or any similar state or local agency, commenced by the filing of a notice of charges, formal order of investigation or similar document; or 6) any arbitration proceeding.

12 Definitions of wrongful acts/professional incidents ADMIRAL Professional Incident means a negligent act, error or omission in the rendering of or failure to render professional services by you or a person acting under your direction, control or supervision and for whose acts, errors or omissions you are legally liable. JAMES RIVER Wrongful Act means any actual or alleged act, error, omission, misstatement, misleading statement, neglect or breach of duty in the performing of or failure to perform Professional Services. DARWIN Professional Services Wrongful Act means any actual or alleged: Negligent act, error, omission, misstatement, misleading statement, neglect or breach of duty; or

13 Assuming Liability DON T!

14 Coverage conditions regarding assuming liability ADMIRAL E. Except and to the extent otherwise provided in this policy, you must not make any payment, admit any liability, settle any "claim" or assume any obligations without our prior written consent. F. You must do whatever is necessary to secure and affect any rights of indemnity, contribution or apportionment that you may have. G. You shall refrain from discussing the facts and circumstances of any "claim" with anyone other than our legal counsel or representatives. JAMES RIVER Notice of Claims As a condition precedent to our obligations under this Policy, you shall give written notice to us as soon as practicable, but in no event later than 60 days after the end of the Policy Period of any Claim made against you. You shall immediately forward to us every demand, notice, summons or other process or pleading received by you or your representative. You will not, except at your own cost, voluntarily make any payment, assume any obligation, or incur any expense. DARWIN No Insured may incur any Defense Expenses or admit liability for, or settle, or offer to settle, any Claim without the Insurer s written consent. The Insurer will have the right to make investigations and conduct negotiations and, with the consent of the Insured which shall not be unreasonably withheld, enter into such settlement of any Claim as the Insurer deems appropriate. If the Insured refuses to consent to a settlement acceptable to the claimant in accordance with the Insurer s recommendation, then, subject to the applicable Limit of Liability, the Insurer s liability for such Claim will not exceed the amount for which such Claim could have been settled by the Insurer plus Defense Expenses up to the date the Insured refused to settle such Claim.